Italian Prosecutor Probes Fiat Chief Marchionne

By Gilles Castonguay

Reuters

A Fiat logo is seen on a car during a press preview at the 2013 New York International Auto Show in New York

A public prosecutor has taken the unprecedented step of putting Fiat SpA’s chief executive under investigation for allegedly violating workers’ rights, the latest development in a campaign waged by a union against new working conditions introduced by the Italian automaker in its home country.

Paolo Mancuso of the public prosecutor’s office in the town of Nola near Naples put Sergio Marchionne under investigation last week after concluding at the close of his preliminary investigation that he failed to heed two court rulings issued in response to the union’s complaints.

Following news of the investigation, Maurizio Landini, secretary general of the union, known by its acronym Fiom, told la Repubblica daily in an interview published March 31 that the union had been vindicated in its campaign, which has seen it file more than 60 complaints in courts across the country.

Fiom accuses Fiat of discriminating against it and its members. In response to their refusal to join other unions in accepting these new working conditions such as a shorter coffee break, it says Fiat has barred it from having a representative at any of its plants. Fiom also says the automaker has preferred to take workers of other union affiliations out of furlough when demand has been strong enough to restart production lines for periods of time.

“This in unconstitutional because in no other democratic country do companies let people work or leave them at home on the basis of their affiliation to this or that union,” Mr. Landini said.

Demand for cars has been so low due to the crisis that Fiat periodically keeps its plants idle to contain costs, leaving its workers at home on reduced pay.

The rulings found Fiat had acted in a discriminatory way and ordered it bring Fiom’s members back to work.

Should Mr. Mancuso eventually decide to bring the case to court, Mr. Marchionne could face up to three months in prison if found guilty of the charges, which have yet to be formally made, according to a judicial source.

Mr. Mancuso has also put under investigation Sebastiano Garofalo, who is responsible for a plant at Pomigliano d’Arco where the latest version of the Panda city car is being built.

Located near Naples, the plant is the focal point of Fiom’s campaign because it was the first one to adopt the new working conditions after a major refitting of the plant. The conditions were accepted by every other union in exchange for the investment required to prepare the plant for the Panda.

Since reopening Pomigliano in late 2011, Fiat has been gradually bringing 4,500 or so workers back to the plant but it has kept many of them on furlough.

Fiat has always rejected as groundless Fiom’s accusations and has appealed every ruling that it has lost.

“This initiative is the umpteenth expression of an unprecedented judiciary offensive directed by FIOM against Fiat, for more than two years, by filing, in connection with the sole issue of the enjoyment of the ‘diritti sindacali’ (union rights), 62 lawsuits,” it said in a statement Friday after learning of the investigation.

“Of these 45 were resolved by 22 courts in favor of Fiat, 7 resolved in favor of FIOM, 7 led to the referral to the Constitutional Court of the issue of the constitutionality of the relevant provisions of law, and 3 are still pending,” it said.

Mr. Marchionne has often said the contradictory rulings–let alone the Fiom’s campaign–not only made it difficult for Fiat to ensure the smooth management of its operations in Italy, but also discouraged foreign companies from investing in a country in dire economic straits with a desperate need for new jobs.

Fiat has 20 days to reply to Mr. Mancuso, who will then decide whether to shelve the investigation or bring it to court.

Mr. Mancuso’s office declined to speak publicly about the case.

Giuseppe Terracciano, secretary general of a rival union called Fim Cisl, urged Fiom to stop its campaign, saying it did nothing but discourage Fiat from making investments in the country.

“What is needed is a reformist union that abandons the courtroom and returns to making agreements…(that) protects the interests of the workers,” he said in a statement.

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